MHCLG to ban leasehold for commonhold

New leasehold flats will be banned under government plans, with a move to a commonhold model, the Ministry of Housing, Communities and Local Government (MHCLG) confirmed today.

Following a manifesto commitment, MHCLG has published a Commonhold white paper to mark “the beginning of the end for the feudal leasehold system”. Changes within the paper include new rules enabling commonhold for all types of development, including mixed-use schemes and shared ownership homes.

Under the reforms, developers will also be able to “build with confidence, maintaining safeguards for the consumer”. There will also be clearer management for commonholds, with rules around appointing directors and standards for repairs.

The paper sets out powers for home owners, including over agreeing the annual budget and how a building is run.

Under the current leasehold system, third-party landlords own the building with the home owner only having the right to occupy the land or property for a set period. Home owners can be subject to “escalating” ground rent costs and service charges, with the landlord determining how the building is run.

Meanwhile, commonhold ownership – which MHCLG said was a model “used all over the world” – means people can own their …